Biotech Sector Highlights: CDNA Surges on Medicare News, ATAI to be Acquired by Eli Lilly, and Abbott Raises Outlook

The biotechnology sector saw significant movement this Thursday, led by CareDx following favorable Medicare decisions, AtaiBeckley’s acquisition by Eli Lilly, and positive financial momentum from Abbott Laboratories.

CDNA Reaches New Highs

CareDx Inc. (CDNA) emerged as the day’s top performer, with shares climbing over 35%. This rally follows the finalization of the Medicare Local Coverage Determination (LCD) for molecular testing used to detect solid organ allograft rejection. The policy confirms Medicare coverage for CareDx’s transplant surveillance portfolio—including AlloSure Kidney, AlloMap Heart, AlloSure Heart, and AlloSure Lung—covering kidney, heart, and lung transplant recipients. The policy is set to take effect on August 30, 2026. The company is scheduled to release its second-quarter 2026 financial results after the market close on Thursday, July 30, 2026. CDNA closed at $40.34, a 35.60% increase.

AtaiBeckley Acquisition News

AtaiBeckley Inc. (ATAI) shares surged more than 33% following the announcement that Eli Lilly and Co. (LLY) will acquire the company. The deal is valued at up to $3.8 billion, consisting of $2.8 billion in upfront cash and $1.0 billion in contingent value rights (CVRs). The CVRs are contingent upon specific regulatory and development milestones for the BPL-003 and VLS-01 programs, both of which target treatment-resistant depression. BPL-003 is currently in Phase 3, while VLS-01 is in a Phase 2b study. The transaction is expected to close in the third quarter of this year. ATAI closed at $7.15, up 33.40%.

Apollomics Gains Momentum

Apollomics Inc. (APLM) rose by 21% on Thursday, bringing its total weekly gains to over 60%. The company’s lead candidate, Vebreltinib (APL-101), is a selective c-MET inhibitor undergoing development for non-small cell lung cancer (NSCLC) and other advanced solid tumors. Currently, a Phase 2 exploratory trial is underway for patients with metastatic clear cell sarcoma. Additionally, Nasdaq notified Apollomics on July 8, 2026, that the company has regained compliance with the Market Value of Listed Securities (MVLS) requirement. APLM closed at $19.19, up 22.23%.

Virax Biolabs Highlights Pipeline Potential

Virax Biolabs Group Ltd. (VRAX) jumped 13% after CEO James Foster released a shareholder update detailing fiscal 2026 results and commercial progress. The company operates two main platforms: ViraxImmune, a T cell-based immune profiling platform, and ImmuneSelect, a research-use portfolio of immune reagents. For the fiscal year ending March 31, 2026, Virax reported $6.4 million in cash and $8.3 million in total assets. The company also regained Nasdaq compliance following a 1-for-25 reverse stock split. Commercially, Virax signed a multi-country agreement with Fosun Diagnostics to expand ImmuneSelect into Southeast Asian markets. Despite these advances, Foster noted that the company’s current market cap may undervalue its assets and clinical pipeline. VRAX closed at $3.90, up 13.04%.

Entera Bio Progressing

Entera Bio Ltd. (ENTX) was among the day’s top gainers, with shares rising over 12%. The company is developing EB613, the first oral anabolic tablet intended for osteoporosis treatment. Entera expects to start Phase 3 clinical trials in late 2026, with topline results anticipated in the second half of 2028. ENTX closed at $2.00, up 12.36%.

Abbott Laboratories Raises Outlook

Abbott Laboratories (ABT) rose over 10% following robust Q2 financial results and an upgraded earnings outlook. Second-quarter net sales rose 13% year-over-year to $12.6 billion, with comparable sales up 4.8%. Adjusted earnings for Q2 reached $2.29 billion ($1.31 per share). For the full 2026 fiscal year, Abbott raised its adjusted EPS guidance to a range of $5.45 to $5.60. ABT closed at $98.83, up 10.71%.

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